Is Credimac Debt Relief a scam?

Absolutely not. Credimac Debt Relief was founded as a Public Benefit Corporation to assist consumers. Our highly committed employees pursue our mission to assist people in solving their debt problems including the behaviors that drive people into those problems.

Why did credimac choose Buffalo, NY for it’s HQ?

We LOVE Buffalo. Seriously, it’s a fantastic choice for our business. The city has a fantastic talent pool available for our operations. Several top notch universities and a affordable cost of living make Buffalo (and upstate NY) a perfect place for a new FinTech startup.

Is credimac a federal agency?

No, absolutely not. We are not a federal agency or affiliated with one. However, we are a public benefit corporation. Here’s our publicly stated purpose: “It is our belief that consumer credit (including, but not limited to revolving credit card debt, medical bills, student loans, etc.) continues to grow exponentially and to the detriment of consumers’ long-term financial health. Consumers should have the same financial tools available to them as do corporations, e.g. debt restructuring. By offering consumers the choice and ability to restructure outstanding debts, the Corporation believes it can negotiate effectively with various creditors and secure the best possible financial outcomes for their consumer clients.”

Are there any specific types of debt you can help me with?

Credimac Debt Relief can assist you with debt from department store cards, credit cards, medical bills, and many related types of unsecured debt. However, our program is not designed to assist with a debt relating to collateral (such as mortgages and auto loans). Additionally, we do not resolve federal student loans. But we can help with private student loans based on the case.

Is there any possibility of being totally free from the debt when done?

Our stated goal is get you debt free from all unsecured debt. It will take hard work, persistence and dedication on your part. However, we feel strongly, that if you’re committed, you can get there. Our program is aimed specifically for unsecured debts (unsecured personal loans, medical bills, credit cards, etc). It is generally not possible for us to assist with debt that is secured based on collateral (like auto loans or mortgages). In any case, at the completion of the program, the money you’ve saved by settling your unsecured creditors for less, can be utilized to clear secured debts and begin to save for your financial future. Unfortunately, not everyone that starts our program completes it, so keep in mind that maintaining your monthly savings and program deposit plan is the most critical factor in determining your overall success.

Do I need to take a new loan to clear up my existing debts?

No, you don’t have to. In fact, we believe it a VERY bad option. Some of our clients make use of a consolidation loan together with the Credimac Debt Relief program, but most of them finance their settlements with a monthly deposit directly into their Dedicated Account. Some debt settlement organization or their subsidiaries do offer loans, but we feel it is like robbing Peter to pay Paul. Those loans usually carry a very high interest rate and you find yourself back where you started. The only winners are those organizations, not you. You have not taken the time and process to address the underlying causes of your relationship with debt.

Do I have to pay upfront for the service fees?

No. In the program we offer, we do not mandate upfront payments until the negotiation and settlement of a debt. In fact, if we cannot generate a settlement, that you agree to and confirm, we receive nothing.

Do I need to have all my credit cards included in the program?

If you have a low balance credit card that you maintain for emergencies, even if it’s one that you can pay down to zero quickly, then you don’t need to include that one. There’s no way the program would work effectively, unless you register all of your credit card accounts that have a high balance (greater than $500). Additionally, with open credit cards, it is hard for us to negotiate with all of your creditors when they see you are resolving on a few accounts, but not others.

Should I keep paying my credit card bills?

If you have a legitimate financial hardship, then you can qualify for this savings program. However, if you can easily make payments to all your creditors, then it’s likely that you do not have a true financial hardship.

Will I still be called by debt collectors?

There are state and federal laws to protect you from the harassment from collections, but the truth is the majority of our clients will encounter a few collections calls. However, we are determined to do all we can, to take those calls ourselves and leave you completely out of that hassle from your creditors.

Who is holding my money during a debt settlement?

Credimac does not hold your money. We work with a 3rd party dedicated account manager and payment provider (CFT) that does hold your money. In fact, the account at the dedicated account manager will be in your name. They will arrange for all payments to creditors and to credimac only for our legitimately earned fees.

Who manages the account, which holds my funds during my waiting time for the settlement?

It’s your account and you have control over it. The account was opened in your name and the funds in the account are yours. We always recommend that your funds be kept in a new account, different from your current bank accounts. Industry experience has show that a separation like this dramatically increases the probability that you will achieve success in this program. The fees of Credimac Debt Relief are deducted from this account based on the resolved debt and only after each individual settlement of each debt, as shown in the agreement you signed with us.

How is my credit affected by this?

If the required minimum payments are not made to your creditors, you are probably breaking the terms of the agreement you had with them. These actions will be reported to the consumer reporting agencies as charged-off, delinquent, past due, or late whether or not you registered in a debt settlement plan. Depending upon your credit condition at the time of registration, a debt settlement plan may have a negative impact on your credit score and creditworthiness. Our objective is to settle your debt for the least cost, in the shortest time period. Studies by Will Dobbie, a Princeton professor have shown that a consumer who enters into a debt settlement plan AND maintains program deposits for at least 9 months, will, on average, have a better credit score afterwards than when they began the program.

Are there taxes I have to pay on my forgiven debt?

A forgiven debt is considered by the IRS as taxable income, so towards the end of the year, it is expected that taxes are paid on the settlement. The IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, can probably exempt you from paying the tax. Kindly contact a tax adviser to talk about this issue further.

Will late fees and interest accrue on my accounts?

In the case where you allow your accounts to go delinquent, your creditors will generally add late fees and interest onto your initial balances. Usually, there will be an increase in your balance pending when a settlement is reached. Bear in mind that the interest will accrue irrespective of whether you ensure the minimum payments are made or not. We aim to negotiate significant reductions to the balances existing on your accounts, even after the late fees and interest have accrued.

Is it possible for me to negotiate by myself?

Of course, you can. You can likewise do your personal taxes and get your personal car repaired, but most individuals would prefer to get the experienced professionals to get these tasks done.

Do the processes of negotiation with my creditors, get started instantly?

There are limitations with our negotiation activity depending on a few things: (1) most creditors will only negotiate when debts are >90 days delinquent; (2) when you have been able to save up sufficient funds in your settlement account to make sensible offers to your creditors; (3) your financial hardship is valid. The majority (but not all) creditors find it difficult to spend time on negotiation unless they know there are still funds in the account. The first settlement normally takes place between two and four months of a client’s program start, but can vary seriously based on the amount of your monthly deposit, the number of creditors you registered in the program, and the balance of each account. In other cases, it can possibly take over 6 months before the first settlement is reached.

Will I face a lawsuit if my debts are sent to a law firm?

Creditors have the right to have debts sent to collection agencies and/or even the law firms for outstanding debts to be collected. Historically, lawsuits are filed on a small percentage of registered debts. If this turns out to be the case, we can refer you to a third party service, specifially a law firm that can help in the negotiation of settling the debt.

Can you give me a guarantee that with you, all my debts will be settled for a specific percentage?

No. Every case we encounter involves a negotiation, and we do not give any guarantee as to the way any of those negotiations will go. Moreover, the success of our negotiations is significantly based on your capacity to save a certain amount every month you are participating in the program.

If I enter into your program, will my credit be repaired?

No, we do not offer a credit repair service. We only negotiate debt settlements. However, Will Dobbie, Princeton professor, Woodrow Wilson School, has published research that debt settlements do, on average, improve consumer credit scores.

Are there any advice and/or tips for selecting a debt settlement organization?

We suggest you read through the advice provided by the Federal Trade Commission. Click on this link to access the advice or tips.

Clients who make all their monthly program deposits pay approximately 40-60% of their enrolled balance before fees, or 60-80% including fees, over 24-48 months (in some cases programs lengths may extend beyond 50 months). Not all clients are able to complete our program for various reasons, including their ability to save sufficient funds. Our estimates are based on our past experience results, which will vary depending on your specific circumstances. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Our service is not available in all states and our fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest.